the application of unfc to mineral resources · 2019. 4. 29. · ± hugo dummett n e xt(w) u/g 31...

The Application of UNFC to Mineral Resources

Workshop – UNFC and UNRMS: Tools for Managing Resources for Sustainable Development, Geneva, 29.04.2019

29 April – 3 May 2019, Palais des Nations, Geneva

The Application of UNFC to Mineral ResourcesWorkshop – UNFC and UNRMS: Tools for Managing Resources for Sustainable

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UNFC was originally designed for the application in the minerals and oil/gas sectors. Over the years it was extended to a much larger variety of Natural Resources.

The application of UNFC (and UNRMS) to mineral resources has to be understood within a framework of national and supranational management of the minerals resources together with the use of the SDGs as a move to make the mining industry fit for a sustainable and acceptable future.


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Use of UNFCUNFC provides a method for the industrial and financial sectors, governments and NGOs to incorporate published data into databases, mineral inventories, i.e. the management of resources.

Use of CRIRSCOCRIRSCO is recognised by ESMA for use on European Union stock exchanges (ESMA = European Securities and Markets Authority)Accepted on a number of other stock exchanges around the world (Canada, Singapore, ...)


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(Public) Reporting StandardPromoting best practise in reporting ofresources and reserves incl. classificationfollowing world-wide standards. Strict rule ofethics and competency. Reliable and transparent information for investors.

Classification ToolGlobal and governmental communication tool. Just classification, no reporting, securityrecognition and competency rules. Comparablebetween different resource types. Reliable information on mineral inventory for furtherusage.


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Type

of

mine (a)

Proved ore reserves at

end 2012

Probable orereserves at

end 2012

Average

mill

recovery %

Rio Tinto share

Tonnage Grade Tonnage Grade Interest % Recoverable

metal

GOLD millions

of tonnes

grammes

per tonne

millions

of tonnes

grammes

per tonne

millions of

ounces

Reserves at operating mines

Bingham Canyon (US)

– open pit (l) O/P 417 0.21 287 0.18 64 100 2.875

– stockpiles 40 0.14 41 0.14 64 100 0.232 Grasberg (Indonesia) OP+UG 800 1.03 1624 0.74 68 (q) 12.227

Northparkes (Australia)

– open pit and stockpiles 8.2 0.24 67 80 0.035 – underground U/G 66 0.28 68 80 0.328

Oyu Tolgoi (Mongolia)

– South Oyu open pit (r) (y) O/P 426 0.42 614 0.24 74 33.5 2.581

– South Oyu stockpiles (s) (r) 9 0.33 74 33.5 0.024

Reserves at development projects

Eagle (US) (u) U/G 5.2 0.25 55 100 0.023


– Hugo Dummett N (v) U/G 460 0.37 83 33.5 1.544

– Hugo Dummett N Ext(w) U/G 31 0.62 83 30.5 0.159

Rio Tinto 2012: gold reserves


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Type of

mine

(a)

Proved ore reserves at end 2012

Probable orereserves at end 2012

Average mill

recovery

%

Rio Tinto share


metal GOLD millions

of tonnes

grammes

per tonne

millions

of tonnes

grammes

per tonne

millions of

ounces


Bingham Canyon (US)

– open pit (l) O/P 417 0.21 287 0.18 64 100 2.875

– stockpiles 40 0.14 41 0.14 64 100 0.232

Grasberg (Indonesia) OP+UG 800 1.03 1624 0.74 68 (q) 12.227




– South Oyu open pit (r) (y) O/P 426 0.42 614 0.24 74 33.5 2.581 – South Oyu stockpiles (s) (r) 9 0.33 74 33.5 0.024


Eagle (US) (u) U/G 5.2 0.25 55 100 0.023




E1-F1-G1 E1-F1-G2


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Type of

mine

(a)

Proved ore reserves at end 2012

Probable orereserves at end 2012

Average mill

recovery

%

Rio Tinto share


metal GOLD millions

of tonnes

grammes

per tonne

millions

of tonnes

grammes

per tonne

millions of

ounces


Bingham Canyon (US)

– open pit (l) O/P 417 0.21 287 0.18 64 100 2.875

– stockpiles 40 0.14 41 0.14 64 100 0.232





– South Oyu open pit (r) (y) O/P 426 0.42 614 0.24 74 33.5 2.581 – South Oyu stockpiles (s) (r) 9 0.33 74 33.5 0.024


Eagle (US) (u) U/G 5.2 0.25 55 100 0.023




E1-F1-G1 E1-F1-G2

Reserves at Operating Mines = “On Production”higher sub-classes E1.1-F1.1-G1 and E1.1-F1.1-G2


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Type

of

mine

(a)

Proved ore reserves at

end 2012

Probable orereserves at

end 2012

Average

mill

recovery

%

Rio Tinto share


metal

GOLD millions

of tonnes

grammes

per tonne

millions

of tonnes

grammes

per tonne

millions of

ounces Reserves at operating mines

Bingham Canyon (US)

– open pit (l) O/P 417 0.21 287 0.18 64 100 2.875 – stockpiles 40 0.14 41 0.14 64 100 0.232


Northparkes (Australia) – open pit and stockpiles 8.2 0.24 67 80 0.035

– underground U/G 66 0.28 68 80 0.328

Oyu Tolgoi (Mongolia) – South Oyu open pit (r) (y) O/P 426 0.42 614 0.24 74 33.5 2.581

– South Oyu stockpiles (s) (r) 9 0.33 74 33.5 0.024


Eagle (US) (u) U/G 5.2 0.25 55 100 0.023




E1-F1-G1 E1-F1-G2

Reserves at development projects= “Justified for Development”Sub-classes E1.1-F1.2-G1 and E1.1-F1.2-G2


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Likely mining

method

(a)

Measured resources at end 2012

Indicated resources at end 2012

Inferred resources at end 2012

Rio Tinto Interest %

Tonnage Grade Tonnage Grade Tonnage Grade

GOLD millions

of tonnes

grammes

per tonne

millions

of tonnes

grammes

per tonne

millions

of tonnes

grammes

per tonne Bingham Canyon (US)

– Open Pit (l) O/P 2.7 0.13 100

– North Rim Skarn U/G 1 2.1 9 1.7 10 1.5 100 Eagle (US) (m) U/G 0.4 0.18 0.1 0.12 100

Grasberg (Indonesia) OP+UG 490 0.63 1851 0.53 94 0.46 (r)

Northparkes (Australia) U/G 14 0.3 3.7 0.13 271 0.26 80 Oyu Tolgoi (Mongolia)

– Heruga ETG (s) U/G 910 0.49 30.5

– Heruga IVN (t) U/G 60 0.37 33.5 – Hugo Dummett North (u) U/G 292 0.31 574 0.31 33.5

– Hugo Dummett North Extension (v) U/G 90 0.57 100 0.3 30.5 – Hugo Dummett South (w) U/G 490 0.09 33.5

– South Oyu (x) O/P 22 0.65 150 0.5 453 0.23 33.5

Wabu (Indonesia) O/P 44 2.47 (r)

E2-F2-G1 E2-F2-G2 E2-F2-G3


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Ensure sufficient, reliable, affordable and environmentally responsible supplies of energy and raw materials

Demonstrate alignment to SDGs

Decarbonize the economy

Social acceptance

The Challenges for mineral industry

“If mining companies truly hope to repair their image, they must do more than change their messaging. They must also fundamentally change their behaviors around the way they mine how they engage with communities, attract talent, and deliver on their promises.”

James FergusonGlobal Mining Tax Leader

Deloitte UK


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The UNFC Mineral Management System

• Promote the consistent and coherent classification of all mineral resources and “values”

• Provide specifications and guidelines that will allow the mineral industry to align to good outcomes• Resource classification (UNFC Framework)• Resource management• Socio-economic and commercial assessment• Innovation planning and management• Definition of life-cycle and certification of recovery chains• Collaboration with CRIRSCO, PERC and other National

Reporting Organizations for improvement of the UNFC and its links to historical accounts.


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COMPETENCY

The use of the UNFC will require persons with competence in the fields of minerals, oil & gas, CO2-injection, renewable energy (geothermal, bio, hydro, solar, wind), nuclear energy and anthropogenic resources. Future projects will cover water as a resource.

Background

Competent / Qualified Persons (CP / QP) are presently required for:Reporting mineral exploration and mining (CRIRSCO; PERC, JORC, SAMREC, NI43-101, etc.).Reporting for oil and gas (PRMS, NI51-101, AIM, etc.).First standards for geothermal energy have been initiated in Australia and Canada.CPs are commonly geoscientists, petroleum, mining or metallurgical engineers.


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Conclusion:

UNFC is an ideal system to manage resources on a industrial, regional, national and supranational level, esp consideringlongterm views and international comparability.

The industrial codes are well established reporting standards forindustry ad finance, esp. for short and medium terms.

A clear definition of competency and Competent Persons / Evaluators is absolutely necessary for the protection of theprojects and the public interests.

Thank you

Michael U.C. Neumann

EFG Vice-President & Chair of Minerals

Working Group

European Federation of Geologists

[email protected]

29 April – 3 May 2019, Palais des Nations, Geneva

the application of unfc to mineral resources · 2019. 4. 29. · ± hugo dummett n e xt(w) u/g 31...

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